Bitcoin mining: Greenidge listed on the Nasdaq

A bitcoin mining company, Greenidge Generation Holdings, has officially announced its listing on Nasdaq.

Technically speaking, it is a merger with an already listed company, Support.com (SPRT), whose shares jumped to $7.1 yesterday after 12 months in which they had never managed to exceed $2.5. 

SPRT has been listed on Nasdaq since 2011, when it debuted with a price of around $15 a share. 

After an initial sharp drop to just $5 that year, it peaked at over $18 in 2013. 

Since then the price has fallen more or less steadily, to a low of less than $1 during the financial market crash of March 2020. 

The news of the merger with Greenidge has reinvigorated SPRT’s share price, bringing it back to the levels of late 2014. 

Support.com, a cloud-based software and technical support services company, will be acquired by Greenidge, a bitcoin mining company. 

Greenidge, the first bitcoin mining company on the Nasdaq

This will make Greenidge the first bitcoin mining company listed on the Nasdaq with a wholly-owned power plant. There are already other listed mining companies, but Greenidge’s special feature will be that it owns its own power plant. 

The company owns a natural gas-fired power plant in Dresden, New York, so it can use “native” energy to mine BTC. The power plant has a capacity of 106 MW, of which 19 MW is dedicated to bitcoin mining. 

The company expects EBITDA to exceed $50 million in 2021, and to exceed $160 million in 2022.

After the completion of the merger, Support.com shareholders will collectively own approximately 8% of Greenidge’s common stock.

The CEO of Greenidge, Jeff Kirt, said: 

“This merger is an important next step for Greenidge as we build upon our existing, integrated and proven platform for bitcoin mining and generation of lower-carbon affordable power. The transaction is a validation of our transformational journey, our proprietary relationships, and our industry expertise. It will allow for public market growth capital to propel Greenidge as we look to replicate the business model, which we have successfully executed in Upstate New York, in other locations”.